In & Around Kirkwood - Atlanta, GA


Georgia Home Renovation Loans - Consider an FHA 203K or 203K Streamline Loan

If you've found your "dream home" but it needs a little TLC, no worries!  There is a fantastic loan program home renovation loans in Atlanta Georgiathat will allow you to purchase the home and build the cost of the renovations into the mortgage.


What is the difference between a regular 203K and a streamline 203K?

  • Streamline - between 5K and 35K with no structural changes to the property
  • Regular - greater than 35K and / or structural changes to the property

Is the borrower allowed to perform the work to the home?

  • Yes but very difficult to get approved and must be minor work or work that the borrower has a license to perform if it is major work.

Is the house appraised "As is" or with work completed?

  • The house is appraised taking repairs / rehab into consideration of the value.

How long do you have to complete the work?

  • Up to 6 months.

It the rate higher on a 203K than a regular FHA loan?

  • Yes.  Anywhere from .5% to 1% higher in rates.

Is it harder to qualify for a 203K than a regular FHA loan?

  • It can be.  But that can be compensated by the borrower's income, credit & assets. 

Are the 203K limited to single family residences?

  • No.  The program can be used for owner occupied 1-4 unit dwellings and condos.

How does the renovation company or contractor get paid?

  • The contractor gets paid through Brayden Capital's escrow department.  They are allowed 2 to 5 draws depending on the cost of the rehab.

What type of out-of-pocket expenses should the buyer be prepared to pay?

  • There is a home inspection or an FHA consultant fee to determine the scope of the work.  The cost varies from $300 to $1,000.   [based on my experience, it is usually under $500]

 How long does it take to close and receive the first draw?

  • We need 30 days to close and it will take up to one to two weeks after closing to receive the first draw

If you are thinking of purchasing an Atlanta home that needs a few renovations and/or repairs, please contact Brayden Capital Home Loans or you can call me at 404.432.1844 for a few loan officer recommendations!



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Posted by:  Kerry Lucasse - Atlanta GA Real Estate Agent - Atlanta Home Search Team
The ATL Home Search Team is part of Keller Williams Realty, specializing in the Intown Atlanta neighborhoods including DecaturOakhurst, East Lake, and Grant Park / Ormewood Park.

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Comment balloon 2 commentsKerry Lucasse • September 03 2010 12:21AM


If you are paying .5 to 1% higher you are paying too much. The rates on a FHA 203K are typically .25 to .5% higher max.

There's also a conventional renovation product that works much like the 203K, but will allow for Investors, called the Fannie Mae HomeSTYLE. Not to be confused with the HomePATH, which is only available on Fannie properties, the HomeSTYLE is NOT property specific.

Posted by Jonathan Blackwell over 8 years ago

Many buyers can pick up instant equity by using renovation loans when buying fixer uppers

Posted by Dave Halpern, Louisville Short Sale Expert (Keller Williams Realty Louisville East (502) 664-7827) about 2 years ago